How does EDI work? One credible source explains an example of an EDI transaction, as it would be for a purchase order in these seven steps:

1. The buyer’s production database includes data generated by the applications software. The application software may be a vendor-purchased package or custom-developed. The buyer enters order information, generating a purchase order on the computer. The order information then channels through a number of interface programs.

2. The interface programs perform edits and checks on the document and direct the order data in to predefined EDI interface files. The EDI interface files contain the order information in a form that can be read by the EDI translation software — a set of programs that translates or maps the interface file data into an electronic document formatted according to EDI standards. The el

The next question that needs to be answered is, “OK, What’s the catch?” The catch is that implementation of the system can be rather difficult. Since you are dealing with a totally new way of doing business, changes are going to have to take place. Up until the “go live” of the EDI software, employees were used to doing business with paper. They were used to sorting, copying, filing, shredding, and dealing with accounts receivable by paper invoices. Now they must learn a new way of business that incorporates EDI and does away with the old ways of paper business. Also, companies that implement EDI must also have a well-trained IT staff. With out a decent IT staff, the EDI system may not work for long. Problems do arise with such a system.

In conclusion, EDI is a very valuable tool in business today. Companies that invest and implement EDI will have a competitive edge over companies that do not have it. There is no reason that this technology shouldn’t become a standard way of doing business in the near future.

3. The communication software adds appropriate communications protocols (e.g., asynchronous or bisynchronous) to the EDI document in preparation for transmission over telephone lines.

7. The interface programs perform edits and checks before the data is integrated with the supplier’s application software and populates the production database. The application software on the supplier’s computer can now process the buyer’s order.

ectronic d

Some topics in this essay:
Data Interchange, EDI EDI, , doing business, supplier’s computer, interface files, edi interface, edi interface files, using edi, electronic document, application software, interface programs, translation software, interface programs perform, perform edits checks, interface files edi, data predefined, files edi interface,